Achieving Business Excellence, Role of Empowerment V. N. Choudhary, - PDF document

Achieving Business Excellence, Role of Empowerment V. N. Choudhary, V. N. Choudhary, E.D. (B.E.), NTPC Limited, 19 th February, 2010 Coverage � Objective � About Excellence About Excellence � About Empowerment � Empowerment thorough Business Excellence Models � Obstacles of Empowerment � Characteristics of Empowered Peoples Ch i i f E d P l � Conclusions 1

Objectives � To highlight the role of empowerment through To highlight the role of empowerment through various Business Excellence Models leading to Inclusive Sustainable Growth to the satisfaction of Stakeholders. Questions we must ask Empowerment Leads to Excellence What is relationship between empowerment and business 1. excellence? 2. What do we mean by Empowerment of people? y p p p What are the characteristics of empowered people? 3. 4. Do we need empower people? Do we really want empowered people? 5. 6. How do people develop sense of empowerment? 7. How can Leaders facilitate empowerment? What is the characteristics of Organisation which 8. f facilitates empowerment? ili ? What are the frameworks of excellence which incorporate 9. empowerment? What are important similarities in models with emphasis 10. on empowerment? How these models help in empowerment? 11. 2

What is Excellence Outstanding practice in managing the organisation and achieving results based on a set of Functional Concepts which include: Concepts which include: � Achieving Balanced Results, � Adding Value for Customers, � Leading with Vision, Inspiration & Integrity, � Managing by Processes, � Succeeding through People, d h h l � Nurturing Creativity & innovation, � Building Partnerships, � Taking Responsibility for a Sustainable Future. What is Empowerment � The vesting of employees with necessary skills, knowledge, information and authorities in such a way as to enable them to take all actions necessary to produce the specified outputs in the most effective and efficiency way. � A periodic setting of clear targets gives the necessary guidance within the framework of the overall objectives of the organisation. 3

Types of Empowerment Two types of empowerment: yp p � Individual level � Group level Individual level empowerment: Degree of control exercised by individual employees over work setting. Group level empowerment: Amount of control exercised by the group as a whole over the work setting. Two Approaches of Empowerment A. Conventional view B. Alternative view � Start at Top � Start at Bottom & Middle � Clarify Organizational � Understand need of vision, mission, values employees � Specify clearly roles, tasks � Set Model Behavior of empowered employees � Rewards and responsibility � Team building & co ‐ g � Delegation of power � Delegation of power operative behavior or � Accountability for Result group work � Fully trust people to perform 4

Requirements for Empowerment � Impose a structure on Employees, e.g. D.O.P. � Performance Management Process � Policy guidelines l d l � Teams with strong leaders in place of hierarchy � Self managing teams � Relevant Training Scheme � Appropriate Reward Schemes � Skills to work collaboratively � Knowledge to be empowered � Problem Solving skills � Understanding of Performance organisation Steps for Empowerment � Sharing of Information Sharing of Information � Organisation Structure change � Team Development � Training Opportunities � Reward for Risks & Initiatives � Emotional Support System 5

Cycle of Empowerment Punishment for Learning mistakes & Reinforcement Growth Disenchantment Increased Innovative Confidence Outcome Disempowerment/ Disruption Empowerment of New Pattern Self & Others Self & Others Of actions Of actions New Returns to old Redefinition Experiences behavior & feel of Self & more & role Perspectives disempowered Elements of Empowerment: Main elements of empowerment are as follows: � Self – sufficiency or Competence It means that one is capable of performing a particular It th t i bl f f i ti l task. Employees will not accept responsibility for making decisions until they are confident of their abilities. � Meaningfulness It means the feeling that the task is valuable both to the organization and to oneself organization and to oneself. � Personal control � Impact It refers to the belief that one has an influence on decisions of the organization. 6

Approaches to Empowerment Job Mastery Job Mastery Control Role models Social Reinforcement & Persuasion Emotional Support Importance of Empowerment Knowledge workers Knowledge workers Cut throat competition Speed and flexibility Globalization Human resource development 7

Different Excellence Models Propagating Empowerment � EFQM Excellence Model. EFQM Excellence Model. � Malcolm Baldrige Excellence Model. � Deming Prize. Australian Business Excellence Framework. The EFQM Excellence Model Enablers Results People People Results Processes, Key Results Leadership Strategy Products & Customer Results Services Partnerships and Society Results Resources Learning, Creativity & Innovation 8

Empowerment in EFQM Model � Sub Clause 1d: Leaders reinforce a culture of excellence with the organization’s people. � Sub Clause 3b: People’s knowledge and capabilities are developed. p � Sub Clause 3c: People are aligned, involved and empowered. � Sub Clause 3d: People communicate effectively throughout the organization. � Sub Clause 3e: People are rewarded, recognized and cared for. � Sub Clause 4a: Partners & suppliers are managed for sustainable benefits. � Sub Clause 5e: Customer relationships are managed and enhanced. Baldrige Criteria for Performance Excellence 9

Core Values and Concepts • Results Orientation • visionary leadership • Customer Focus • customer-driven excellence • Leadership and Constancy of • organizational and personal learning Purpose P • valuing employees and partners • Management by Processes and Facts • agility • People Development and • focus on the future Involvement • managing for innovation • Continuous Learning, Innovation and • management by fact Improvement • social responsibility p y • Partnership Development • focus on results and creating value • Corporate Social Responsibility • systems perspective Baldrige EFQM Obstacles of Empowerment � Depends on fundamental beliefs � Personal orientation � Risk – averse � Hesitation to take Initiative � Lack of emotional support � Incongruent Organizational Culture Love for Authority Love for Authority Fear of Retribution by superiors Fear of Retribution by subordinates Dependency of Subordinates 10

Making Empowerment Effective Impact Impact Competence Meaningfulness Choice Characteristics of Empowered People � Sense of self determination � Meaning � Competence � Competence � Impact � Empowered middle level see themselves as more effective in their work as innovative as less fearful while trying something new as transformational in Leadership ability ‐ engaging upward influence. i d i fl ‐ making quantum changes. ‐ as charismatic due to strong sense of meaning. ‐ as change agent of organisation. ‐ as empowered and beneficial to organisation. 11

Examples of Empowerment Empowerment in Critical Decisions. Empowerment in Improvement Activities. p p Group Work. Problem Solving through Quality Circles. Performance Improvement Teams. Task Force. Individual improvement efforts. Creating Environment for Innovative Work. RTI ACT Building partnership with suppliers &customers Conclusions It is not possible to empower others if I am not feeling empowered. Question one should ask about ones own area of work: Q � Am I continuously working to clarify sense of strategic direction or vision? � Am I continuously working to clarify regarding discipline and control, roles, goals, tasks and line of authority? � Am I continuously striving for participation and involvement? � Am I working continuously to resolve conflicts among people? Contd.. 12

Contd.. � Do I have a sense of meaning and task alignment? To what extent and what can be done to increase it? � To what extent do I have sense of impact, influence, power and how to increase it? � How can I increase sense of competence & confidence to execute my works. � How to increase my self determination and choice y power? It is not checklist but continuously pursued effort. Acknowledgement EFQM Model. EFQM Model. Malcolm Baldrige Model. Deming Award. Australian Business Excellence Framework. ILO American Management Association,Organisational Dynamics,vol26/2 13

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